CSRC fee cut brings no substantial benefit

The Chinese securities regulator’s fee cut is more of a gesture and won’t substantially reduce trading costs for investors, analysts say.

Analysts say China’s latest scheme to breathe life into the A-share market will have limited effect, even as the Shanghai Composite Index responded with its biggest gain for a month.

The securities regulator announced on Friday a 20% cut to transaction costs, effective from September 1, which it predicts will eliminate about Rmb600 million $95 million in costs for the last four months of the year.